The Bitcoin and India: hullabaloo decoded.
In year 2009, a person with alias Satoshi Nakamoto created a new digitized currency. It was this currency that became the sensation of netizens.
In late 2017, Amitabh Bachchan himself became the overnight gainer of the currency surge. This is basically a currency that uses neither banks (nor country exchange taxes) to complete a transaction.
The craze of the currency led online retailers to accept it. Today, Expedia, Xbox among others lead the list of online acceptors of this currency.
Until 2018, India had little regulation on cryptocurrency and left it on the users to be the best judge in the case.
Then on February 1, Mr. Arun Jaitley (Finance Minister) decided to tackle the bull by the horns.
The Minister in his budget speech stated that the government will initiate all efforts to BAN the cryptocurrencies (including Bitcoin). In this direction, the nation refuses to recognize the currency as legal tender.
However, the underlying technology of Bitcoin: Blockchain was accepted into the house. Since, Blockchain technology has multiple uses ranging from cyber security to crypto-currency, the nation will initiate efforts in this effect. It helps to prevent online frauds and keep your savings safe from tricksters.
India already has a large number of Bitcoin users as well as traders. India finds itself in one out of every tenth transaction in the world.
The government also asserted to draw a legal mechanism to make trading as well as dealing in the digital currency a penalised action.
The acceptance of Blockchain
Technology is a welcome addition to the cause of social and financial management in the country. The Blockchain technology will transform numerous manners in which we transact daily (that too for the better)
- The major reason for the move is touted as that being bitcoins being a fluctuating currency. For this reason, the currency has been equated to ponzi scheme.
- The Ministry also added that these currencies lack an intrinsic value as well as assets backing.
- The Ministry also believes that the currency exchange would indirectly promote black money trade in the nation. This will hurt the future of currency trading as well.
- The international trade backing and seamless currency exchange will lead to promotion of destructive activities like: Terrorism.
- Apart from India, China too led the ban on cryptocurrency trading. This means that two major economies are leading the cryptocurrency ban.
The move is titled as a cautionary step of the nation to save the citizens and plug antisocial elements.
The virtual currency market is highly speculative and volatile. The government’s across the world are also having conflicting views on their capabilities. This means that for one nation the virtual currencies promise high returns but in other it poses threats.
After a long speculative period, the bitcoins have finally been shown the door.
Do you think that the cryptocurrency exchange is a fair step for national economy? Share your views in the comments section below.